SMALL FARMS WILL CONTINUE BEING EXEMPT FROM VALUE ADDED
TAX, MINISTER OF AGRICULTURE SAYS
01-05-2008 14:00:00 | Armenia | Economy
YEREVAN, MAY 1, NOYAN TAPAN. In accordance with the
requirements of joining the World Trade Organization (WTO),
starting from January 1, 2009, it is envisaged to collect value
added tax (VAT) from farms in Armenia. However, taking into
account the low profitability of the sector, productivity of
lands in the country and other peculiarities, the Armenian
government has conducted negotiations with the WTO to ease
somewhat this obligation. The RA minister of agriculture Davit
Lokian said in the National Assembly on April 30 that an
agreement has been reached that small farms will continue being
exempt from VAN after the indicated date.
In his words, no VAT will be collected from Armenian farms
and 3 thousand enterprises producing agricultural products. VAT
will be levied on 1,000 entities but the sums levied will be
given back to these farms in the form of subsidies and other
services. D. Lokian announced that this order will be in force
within the next 5 years.